Is it scary to buy oil?

Morning Stock News

Gold   1693,50
(-4,33%)

EURUSD   1,0799
( -4,01%)

DJIA  24115
(-5,67%)

OIL.WTI  25,095
(-36,79%)

DAX   10609
(-13,81%)

The COVID-19 vaccine developed by Pfizer and BioNTech has shown promising results. It proved to be well tolerated in the first human trials. Encouraged investors reacted immediately to such good news.


EUR/USD

EURUSD

On Wednesday, stock markets show multidirectional dynamics. The DAX index failed to close in the positive trend and fell by 0.4%. Europe is still gaining momentum and such changes will certainly affect the markets with a certain time lag. American investors were very cheerful on Wednesday buying back the S&P500 index, which rose by 0.8% since the beginning of trading. In the near future, the dynamics of COVID-19 distribution in the world, as well as economic recovery in leading countries will be under close attention.


BRITISH POUND

The last few trading sessions of the GBP/USD pair managed to win back positions quite well. In the third quarter of 2020, the pound has more chances to grow than the dollar. All this is more because of the U.S. inability to contain the spread of coronavirus. On Wednesday, the pair GBP/USD rose by 0.66% and traded at 1.2480. The road ahead is to the level of 1.25, and further to the daily SMA200 – 1.2680.


Oil

The price of WTI oil is trying to get above $40 per barrel and many people want to buy it there. But is it worth it? The chances of oil market growth are decreasing day by day. Investors ignore the accelerated spread of COVID-19 in the world and expect economic activity to grow. Also overshadowed by optimism is the resumption of oil production in the United States. All this together is putting pressure on the rate and it is likely that the price will soon change direction. On Wednesday WTI oil traded at $39.7 per barrel.


Gold

Gold decided to adjust in advance in order to continue its way up to the cherished level of $1800. On the whole, gold is doing well. The correction is only 20 points, which means almost nothing for gold. The further development of the situation remains according to the old plan. Test the level of $1800 per ounce and further growth. On Wednesday the price per ounce was at $1767.


What’s waiting for us today?

11.00 European Union unemployment rate for June
14.30 US unemployment rate for June
14.30 Number of initial claims for unemployment benefit in the United States.


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